5 Steps from RFP to Award

Five key steps from when you issue a RFP to when you Award. The following infographic provides a basic summary of the chain of events which often transpire when you are required to issue a request for proposal for a product or service. Some of these steps and the amount of time required to properly issue, evaluate and award a RFP are often underestimated. Hopefully this graphic on the 5 steps on the RFP to Award process will provide some useful insight when it comes to the process.

5 Step Summary – FROM RFP TO AWARD

Step 1 – A need is identified and SOW provided

All companies, regardless of size, that are making the effort to issue a Request for Proposal (RFP) are doing so because they have a need for a product or service and are looking for proposals from qualified suppliers to assist with this need. This requirement typically comes with clearly defined specifications. With a Statement or Scope of Work defined the group should now collaborate on the development of the RFP.

Step 2 – Invite suppliers to your RFP

Identifying a list of competent and qualified suppliers to invite to bid on your RFP is often the most important part of the whole RFP process. Some companies prequalify suppliers prior to issuing the tender, some depend on past experience or history from past projects while others depend on recommendations from colleagues. Regardless on how you put together your vendor list this is not one area to short cut.

Step 3 – Question and clarification period

Important to remember that the more detailed your SOW is the fewer questions and clarifications will be issued during the response period. The benefit of a detailed SOW is you will receive more accurate quotations as the unknowns will not be factored into cost.Typically three to four weeks is given for a RFP response depending on complexity and whether site visits are required.

Step 4 – Evaluation of responses

Okay, now you have all these proposals or responses from your bidders. What’s next? Some companies use what is called an evaluation matrix. In it areas like commercial terms are scored and used to determine to justify an award. Basically, you are reviewing proposals in depth and shortlisting the responses you feel are best suited to your project requirements.

Step 5 – Award

With your evaluation complete you are now ready to issue an award. Some companies use an award letter and PO while others use a letter of understanding (LOU) followed by a contract.  Remember to issue rejection letters to unsuccessful bidders. Contract monitoring and hopefully a successful completion to your project. This is a very basic overview and summary of the typical chain of events which occur when issuing a RFP. Check out our website for more details on buyer and supplier solutions like sample RFP’s, response letters and any other forms you might be seeking.

If you have found this information to be useful, please feel free to share out this infographic on 5 steps from RFP to an Award.

 

How effective are your RFP’s?

How Effective are your RFP’s?

That is the question and unfortunately many professionals do not have this question on their radars. They often roll them out the door not truly realizing how ineffective they are.

Request for Proposals are quickly becoming the go to procurement form. They are on the rise because more and more companies are using them for all kinds of project work. Whether this is the right form they should be using for the task at hand is another blog post altogether! In this post we are going to focus on how to improve the effectiveness of your RFP which will help you produce the desired results and how to write a RFP without spending extensive amounts of resources.

To get right to the point, you will save time, money and energy if you focus your efforts on the content you include in your RFP. Increasing and including the correct content will increase its potential for success.

What determines the effectiveness of the RFP you have spent hours developing?

  • Is it the number of questions your supplier’s ask during the response period? YES, if you are getting lots of questions then the Statement of Work is not detailed enough.
  • The actual number of quality vendor responses received?  YES, responding to a RFP is expensive and vendors will put in the effort to provide a quality response if the deliverables are clear. A win for both parties.
  • The prices quoted by your vendors? YES, this will be a factor. If your RFP content is clear the quoted prices will reflect this. Removing unknowns will reduce costs.

[Read more…]

RFP for LTL Freight Services

RFP for LTL Freight Services:

truck_servicesSelecting a freight broker or transportation service provider is one of the most important decisions you will make for your organization.
Why? Because in the event orders are not delivered on-time you will have potentially lost a customer if you are a supplier and if you are a buyer you could be in for production delays which equate into profit loss. Like it or not freight shipping services can make or break your business and they are an integral part of the supply chain.

The Bureau of Transportation Statistics in the USA reported that the trucking and transportation market on a typical business day ships approximately 43 million tons of merchandise, valued at about $29 billion, moved almost 12 billion ton-miles on the nation’s interconnected transportation network.  These statistics imply the significance this industry sector has in regards to transporting our goods. In fact, if it is shutdown for any period it can cripple a country and your business.

Designing a request for proposal for Less than Truckload (LTL) services might include some of the following details: [Read more…]

More Sample RFP Forms

RFP Samples:

Very few purchasing professionals will admit they enjoy the task of writing a RFP, we would much rather dedicate our efforts to the negotiation process, closing a deal or other areas which justify our existence.

Save yourself the stress and your employer the money by utilizing one of the many RFP and RFQ sample templates in one of our bundles. RFQPro provides more sample RFP Forms than any other online provider as a service to both our procurement and supplier clientele.

RFQ45 – RFP is another sample template form and it can be used for software services. Here is a brief look (page 2 and 3) or preview of this 10 page RFP template. [Read more…]

Sample Expression of Interest Form

Expression of Interest

An Expression of Interest (EOI) is used to gauge interest from potential suppliers for a project you have on the drawing board or hope to tender in the near future. By issuing an EOI, you are given the opportunity to pre-qualify vendors capable of completing the work under the restrictions or specifications outlined in your proposal.

Is an EOI similar to or the same as a RFP (Request for Proposal), RFI (Request for Information)? Basically, yes they can be construed as being the same, with the exception of the potential legal ramifications so seek counsel or legal advice to ensure you understand how issuing any of the above will impact your company in the country, state or province you operate your business in. [Read more…]